Ways of Gold Trading on Financial Markets

Gold can be traded in the form of various financial instruments and each has its own peculiarities.

Gold Trading

Gold as a Currency Pair

Gold can be traded against or silver currency in the form of a currency pair in the currency markets or called spot trading (spot market).


Futures Contract on Gold

Gold can be traded through futures contracts or contract. These are actually contracts in which one party undertakes to make or take delivery of a predetermined quantity and quality of gold at a predetermined future date already established price. They are traded on stock exchanges in London, Tokyo, Sydney and Singapore. There are three specialized exchanges that trade with them and these are: New York Mercantile Comex Exchange (COMEX), New York Mercantile Exchange (NYMEX), Chicago Board of Trade (CBOT).


CFD on Gold

Contracts for difference are derivative order to conduct the sale of a quantity of gold. The tool allows you to pay part of the cost that you would otherwise have paid for the quantity of gold, but to take advantage of the privileges of the owner of the asset. CFDs on gold are among the most traded instruments and so traders can enter and exit from its investment with ease.


Gold Through Exchange-Traded Funds

Exchange-traded fund (Exchange Traded Fund – ETF) is a mutual fund that is traded on stock exchanges in the form of a traditional share. Usually follow the movement of a particular stock index, economic sector and others. Gold can be traded through exchange-traded fund GLD and GDX. The first represents the largest fund that also holds physical gold in a safe deposit as collateral. Traded on the New York Stock Exchange, Tokyo, Hong Kong and Singapore. Another ETF tracks the development of the mining companies and is also a popular way to invest in gold indirectly – by the action, which tracks the performance of its producers.

Every one way to trade gold is appropriate, depending on the objectives of the investor. The most important thing is to respect the original development plan and strategy of investment.

Originally posted 2016-02-26 14:23:35.


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